Magna International posts 2Q loss

[August 07, 2009]  NEW YORK (AP) -- Magna International Inc., the Canadian auto parts maker that is bidding for General Motors' European Opel business, said Friday it lost $205 million in the second quarter as the global recession depressed auto sales and demand for its products.

Magna, along with Russian lender Sberbank, is among the suitors for GM's Opel unit. The other potential suitor is Brussels-based investor RHJ International SA.

Aurora, Ontario-based Magna said its loss amounted to $1.83 per share for the quarter ended June 30, compared with a profit of $227 million, or $1.98 per share, a year ago.

Analysts predicted a loss of $1.01 per share, according to a Thomson Reuters poll. Analysts' estimates normally exclude one-time items.

Sales for the period ended June 30 slid 45 percent to $3.71 billion from $6.71 billion and well below Wall Street's estimate of $4.1 billion.

Magna said complete vehicle assembly sales slumped 60 percent to $423 million, while the average dollar content per vehicle fell 10 percent in North America and 7 percent in Europe.

[Associated Press]

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